CINEMABuzz WEEKLY REPORT - 15 March 2013

Taco Bell Hits It Big At Cinemas

Last week Taco Bell launched the 'Cool Ranch Doritos Locos Tacos - and the new product was a huge success.  Taco Bells across the U.S. sold millions of the new Doritos Locos and cinemas were a major factor in the marketing of the product.

By far the most unique component in the marketing strategy was Taco Bell's 3-D ad, which was the first 3-D spot in cinema history.  It premiered during the pre-show 'FirstLook' at more than 8,000 screens nationwide, while a 2-D version of the ad ran at 19,300 screens.  The cinema ads, which were specific to that audience, feature the image of a Doritos chip spinning and exploding, with pieces of chip and seasoning flying out as it morphs into the Cool Ranch Doritos Locos Taco Supreme.  It is accompanied with the tagline: "If you loved the original, wait until you eat the sequel".

Taco Bell has made a commitment to run various ads in cinemas throughout 2013 to amplify the brand's key promotions.  It is estimated that 90% of cinemas are within a 5 mile radius of a Taco Bell location.

Taco Bell management believes cinemas are a perfect avenue to reach their target audience - adults 18 to 34. "It has been proven time and again that adding cinema to a media promotion increases advertising engagement, recall, and likability, so planning cinema upfront like this is clearly the way to go to make the biggest impact" , says Cliff Marks, President of Sales & Marketing, for NCM Media which created the ads.

Chevy 'Drives' Into Theatres

General Motors' new ad campaign for its Chevrolet brand will include the unprecedented use of cinemas.  Last month, GM shed its long held  'Chevy Runs Deep' marketing slogan and replaced it with the 'Find New Roads' marketing theme.

Alan Batey, GM's Chief Marketing Officer, states "Find New Roads represents an opportunity to leverage the product launches that we've got coming up, and the U.S. is really at the forefront of those plans."  The first new ad under the campaign was aired during the Grammy Awards. The ad highlighted the new Stingray and Impala. "Next up will be four standalone product ads that will run on TV but also at cinemas.  We believe it's really fantastic cinema creative" says Batey. 

The pre-feature cinema ads will include 90, 60, and 30 second versions of the 'Find New Roads' promo. "We haven't done much in cinemas before, said Batey, but the great use of emotion and music lend themselves will to this medium".  GM is clearly trying to appeal to Millennials with its new products and feels these new ads will change its image.

In Theatre Dining Takes Off

I've talked about this before but dine-in at cinemas is really taking off and every exhibitor should take note.  It may seem like your combining two risky business endeavors into one - but dine-in cinemas are becoming a very healthy (and extremely profitable) niche and a way for independent cinemas to not only survive but thrive.

For example, the Nitehawk Theatre, in Brooklyn, NY, opened in 2011 as a second-run house - in its auditoriums there are small tables in front of each pair of seats and space between rows for servers, who take orders during preshow and deliver food and drinks during the opening of the feature.  Patrons can place orders during the movie by posting a slip of paper which 'flags' the servers. One of  Nitehawk's signature items and biggest seller are the Fish Tacos (see insert at right).

"Your first thought when you talk about eating at a movie is that it somehow takes away from the cinema experience, but ultimately the trade-off for us, is that we deliver a really good cinephile experience", says Tim League, CEO of Alamo Drafthouse Theatres.

The payoff for all the effort of running a dine-in cinema come with the check. "Most traditional cinemas see per-head expenditures on concession anywhere from $3 to $6. With us, it's over $18," states Fred Schoenfeld, the owner of the single screen Art Deco Commodore Theatre, in Portsmouth, VA.  Sticking with perennial favorites, like sandwiches, salads, and fish n' chips. Schoenfeld says, "we keep our overhead low and our profits high."

I have consulted on a number of dine-in cinema projects, including Alamo Drafthouses, and can attest to their huge success. My advice,  you don't have to have a large menu selection but can start small with a few 'tried and true' items.  Study your demographic, and select menu items appropriately. Keep it simple, but unique and tasty.

Best and Happy Movie Going!
Jim Lavorato